What Happened?
Shares of steel and waste handling company Enviri (NYSE:NVRI) fell 18.1% in the morning session after the company reported weak fourth-quarter 2024 results: Its full-year EBITDA guidance missed significantly, and its revenue fell short of Wall Street's estimates. weighed the positive EPS surprise. Sales declined 7% y/y due to business divestitures and foreign exchange headwinds. Adjusted EBITDA fell compared to last year, reflecting margin pressure in its industrial services and rail businesses, though Clean Earth delivered record profits and improved margins. Despite these challenges, Enviri exceeded analysts' EPS expectations this quarter. Looking ahead, management expects 2025 adjusted EBITDA to come in lower than analysts had anticipated, due to ongoing weakness in the global steel market affecting Harsco Environmental. Overall, this quarter could have been better, as weaker revenue trends and margin pressure out.
After the initial drop the shares shed some of the losses and close the day $7.56, down 13.6% from previous close.
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What The Market Is Telling Us
Enviri’s shares are very volatile and have had 26 moves greater than 5% over the last year. But moves this big are rare even for Enviri and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 19.9% on the news that the company reported weak third-quarter earnings. We struggled to find many strong positives in these results. Its EBITDA forecast for the full year missed and its revenue fell short of Wall Street's estimates. Overall, this was a weaker quarter.
Enviri is down 7.1% since the beginning of the year, and at $7.70 per share, it is trading 38.1% below its 52-week high of $12.43 from July 2024. Investors who bought $1,000 worth of Enviri’s shares 5 years ago would now be looking at an investment worth $497.42.
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